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Derivative Structures and Hedge Accounting under Ind AS

Training dates - March 21 & 22, 2018

Training locaton - Mumbai

Training fee - ₹40,000 + applicable taxes

Summary

Background and Objectives

Ind AS 109 is derived from IFRS 9 and provides guidance for derivatives and hedge accounting, which is one of the most complex areas of accounting under IFRS. One of the common problems encountered by professionals operating in this area is that it requires domain knowledge of what are derivative instruments and how is hedging/ trading effected in the market place on the one hand and what is accounting of such instruments on the other. Both domain and accounting guidance contain several layers of nuances that a regular professional accustomed to regular accounting principles and practices is generally left dazed.

The programme seeks to provide basic guidance on both areas (a) the derivatives and hedging domain and (b) accounting of derivatives without hedging, accounting of derivatives that qualify for hedging and along with related areas like effectiveness testing, methods applied in practice, levels of thresholds for determining effectiveness and the rather daunting documentation requirements.

The programme will follow a workshop mode of applied practical illustrations that corporates generally encounter (which banks and other counterparties would encounter from the other side of the table) and seek to impart guidance that can be applied immediately to live cases. The programme will cover nuances on whether hedge accounting is indeed useful (costs vis-à-vis benefits), when it may be more useful than not, what are the challenges that one would face in implementation, the role of fair valuation of hedging instruments and hedged items and implications of mismatches on reported profits, audit challenges that are generally faced and solutions to minimize such challenges.